Biogen has agreed to acquire from Pfizer a drug to treat cognitive impairment associated with schizophrenia in a deal worth up to $590 million.

The purchase will include an upfront payment of $75 million with up to $515 million in additional development and commercialization milestone payments as well as tiered royalties in the low- to mid-teen percentages,

The drug, PF-04958242, is an AMPA receptor potentiator. AMPA receptors mediate fast excitatory synaptic transmission in the central nervous system, a process which can be disrupted in a number of neurological and psychiatric diseases, including schizophrenia, according to information from Biogen. Biogen aims to initiate a Phase IIb trial in the second half of 2018.

The transaction is subject to customary closing conditions, including the expiration of the applicable waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976 in the United States. Biogen expects the deal to close in the second quarter of 2018.

Source: Biogen